Use the following information for 12-13 On December 1, 2021, Autumn company assigned on a non-notification basis accounts receivable of Php3,000,000 to a bank in consideration for a loan of 80% of the receivables less a 5% service fee on the accounts assigned. the interest rate of the loan is 12% per annum. The company collected assigned accounts of Php2,000,000 and remitted the collections to the bank in partial payment for the loan. the bank applied first the collection to the interest and the balance to the principal. the interest rate is 1% per month on the outstanding balance of the loan. 12. How much cash did autumn receive at the time of the transfer?

4 points

a. Php3,000,000

b. Php2,400,000

c. Php2,280,000

d. Php2,256,000

13. In its December 31, 2021 statement of financial position, what amount should autumn report as current liability?

4 points

a. None

b. Php 400,000

c. P424,000

d. Php1,024,000

Use the following information for 14-16. On February 1, 2021, Blue Hour Company factored receivables with a a carrying amount of Php2,000,000 to Sweet Night Corporation. Blue Hour assess a finance charge of 3% of the receivables and retains 5% of the receivables. 14. Determine the amount of loss on sale to be reported in the income statement of Blue Hour relative to this transaction for February.

4 points

a. None

b. Php60,000

c. Php100,000

d. Php160,000

15. Assume that Blue Hour factors the receivables on a recourse basis. The recourse obligation has a fair value of Php30,000. The loss to be reported should be

4 points

a. Php60,000

b. Php90,000

c. Php120,000

d. Php150,000

16. Assume that Blue Hour Company retained significant amount of risks and rewards of ownership on the factored financial asset, what amount of loss from factoring should the company recognize?

4 points

a. None

b. Php60,000

c. Php100,000

d. Php160,000